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PROJECT REPORTOn

“Equity Funds” At

DhanCreatorsEnsuring Financial Security

Submitted in partial fulfilment of the requirementsFor the award of the degree of

Post Graduation Diploma in Management (PGDM)

To

Guru Nanak Institute of ManagementPunjab Bagh,Delhi

Company Guide: Mr. Sameer Kaila Submitted by: Parul Saxena Roll No.:- 6861 Batch:- 2015-2017

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S.No. Content Page number

1 Certificate from the guide

2 Preface

3 Acknowledgement

4 Executive Summary

5 Introduction

6 Company Profile

7 Literature Review

8 Objective

9 Research Methodology

10 Finding

11 Suggestions

12 Conclusion

13 Questionnaire

14 Bibliography

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APPENDIX – I

CERTIFICATE FROM THE GUIDE

This is to certify that the Project work titled Equity Funds is a bonafide work carried out by Parul Saxena (6861)

Student of Post Graduation Diploma in Management of the Guru Nanak Institute of

Management under my guidance and direction

SIGNATURE OF GUIDE

NAME :

DESIGNATION:

ADDRESS :

DATE:

PLACE:

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PREFACE

Many people consider investing to be a daunting activity. They are bewildered by the profusion and proliferation of investment alternatives, rattled by the fluctuations in financial prices, overwhelmed by the presence of mighty institutional investors, confused by exotic instruments and complicated investment strategies, confused by the intricacies of the tax system, and exasperated by the financial scams that periodically rock market.

Notwithstanding these concerns, investing can be fairly manageable, rewarding, and enjoyable experience, if we adhere to certain principles and guidelines. By this we can expect and hope to maximize our returns by diversifying our investments into suitable portfolios. For this, each and every investor has to be well educated about economy, investment options, market conditions and its consequences.

The main objective is to select the suitable investment criteria like if we want better returns, or consider risk factors, or liquidity or safety of principal. By this we can set our portfolio objectives and construct our portfolio according to our needs and manage it with respect to the market conditions and the securities fairing in the market.

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ACKNOWLEDGEMENT

I extend my special gratitude to my Project Guide Mr.Sameer Kaila (Founder of DhanCreators-Ensuring financial security) for supporting me throughout this project.

I wish to acknowledge my sincere gratitude and indebtedness to my Project guide Prof. Mamta Shah of Guru Nanak Institute of Management Studies, for their valuable guidance and constructive suggestions in the preparation of Project.

Parul Saxena

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EXECUTIVE SUMMARY

"DhanCreators" as the word signifies we are Wealth Creators.

This is a one-stop personal finance service provider to individuals. Our field of business is advising, executing and managing portfolio within carefully designed process framework in order to build wealth and save money for our customers. Our philosophy is to secure a family first and enable it to successfully achieve its Financial Goals.

All financial services like Security analyses, investment and tax planning are offered by us under one roof . Our mission is to be the most trusted and leading provider of independent financial advisory service and to provide the best and prompt services to our investors.

We advise our clients to achieve their financial Goals and get a healthy financial well-being for the rest of life. We treat our investors with due respect and provide them with numerous opportunities to learn and grow. Our Client's financial success is our top priority.

We are also Certified Distributor of Products like

Equities Currency Life Insurance General Insurance Health Insurance Fixed Deposits Bonds Loans & Wealth Products

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In summer training period my topic of study was Equity Funds.

An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

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INTRODUCTION

Mutual Fund:

A Mutual Fund is kinds of trust that pools the savings of a number of investors, investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

Advantages of Mutual Fund:

a) Professional Management - The basic advantage of funds is that, they are professionally managed by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio.

b) Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others.

c) Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors.

d)Liquidity - Just like an individual stock, mutual fund also allows investors to

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liquidate their holdings as and when they want.

e) Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 20000, where SIP start with just Rs.500 per month basis.

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Disadvantages of Mutual Fund:

a) Professional Management- Some funds don’t perform according to the market, as their management is not dynamic enough to explore the available opportunity in the market, thus investor loose there money.

b) Costs – The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon.

c) Dilution - Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

d) Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability

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History of Mutual Fund in India:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases:

First Phase-(1964-87):

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management’s

Second Phase –1987-93(Entry of Public sector funds):

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of

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Rs.47, 004 crores.

Third Phase- 1993-2003(Entry of Private sector funds):

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003:

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulation

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than

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Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

A graph indicates the growth of assets over the years.

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ON THE BASIS OF NATURE THERE ARE THREE TYPES OF

MUTUAL FUNDS

a) Equity fund:

These funds invest a maximum part of their Principal amount into equities holdings. The structure of the fund may vary different for different schemes and the fund manager’s outlook on different stocks. Equity investments are meant for a longer term, thus Equity funds rank high on the risk-return matrix.

b) Debt funds:

The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors.

c) Balance fund:

They are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of

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the scheme. These schemes aim to provide investors with the best of both the Funds. Equity part provides growth and the debt part provides stability in returns.

Company Profile

Logo of Company

DhanCreators is a Wealth Management Firm whose inclusive and sensible strategy have won many trusted relationships with High Net Worth Individuals, Corporate, Trusts and Institutions due to our ability to analyse and understand the Investment Needs of our clientele.

We are fast growing firm guided by our ethics and morals working in the field of financial services since 2015 and a single point contact for all your investment and financial needs. We keep on reviewing our work to ensure to achieve best practices in terms of transparency and accountability. The foundation of our business conducts requires honesty, confidentiality and

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integrity in all matters.

Financial Planning is the process of meeting your life goals through proper asset allocation.  In simple words, its a blue print which can help you to achieve your goals and objectives for the future.

We are well focused and provide need based services to people as per their specific requirements.

We offer tailor made solutions for all your financial needs.

We are Certified Mutual Fund Distributors and promote different Mutual Funds Schemes of Asset Management Companies.

We are also Certified Distributor of Products like Equities, Currency, Life Insurance, General Insurance, Health Insurance, Fixed Deposits, Bonds, Loans & Wealth Products etc.

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Since we are directly associated and affiliated to almost all Financial Products available in the market,  we provide an honest and unbiased product mix for the financial investments and wealth creations to our clients.

Vision Statement

To be among top trusted advisors in the world by 2025.

Mission Statement

Through commitment to people, system and technology, we lead the way in providing value to our investors by spreading financial awareness about various products, organizing client’s investments at one place and making it accessible and useful, making investing a happy and delighting experience.

DhanCreators- Vikaspuri is located at Delhi state, Delhi district And the address of company are [DG-3/142, Vikas Puri, New Delhi – 110018].

Contact phone number- 9599956770, 9998554836, 011-43082306. The

domain name is dhancreators.com; it is created in 2015-08-09 & changed in 2016-03-30.

Individual company details are listed below:-

Domain name dhancreators.com | 1&1 Domain Name Registration

Main IP Address 66.199.234.226

IP Geolocation United States, New York, New York on a map

Created 2015-08-19

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Changed 2016-03-30

Age 0 year 327 day

Table 1.1 Establishment details of DhanCreators

Literature Review

In summer training period my topic of study was Equity Funds.

An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.

Equity Funds

Mutual fund is a trust that pools money from a group of investors sharing common financial goals and invests the money thus collected into assets classes that match the stated investment objectives of the scheme.

Equity mutual fund is a type of mutual fund. It is considered to be a more risky

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fund as compared to other fund types. However, they also provide higher returns than other funds. It is a fund that mainly invests in stocks. These funds are categorized according to company size and the style of investment in the portfolio. They are specialty funds that mostly target business sectors like real estate, commodity sector, health care sector etc.

There are different types of equity mutual funds, each falling into different risk bracket. In the order of decreasing risk level, there are following types of equity funds.

Types Investment Objectives Portfolio Of Investment RisK Associated

Aggressive Growth Fund

Capital AppreciationThese funds are invested in less researched shares. The shares are highly risky in nature.

Highly volatile

Growth Fund Capital Appreciation

These shares are invested in companies that are expected to perform well in the future.

Comparatively less volatile

Specialty Fund Capital Appreciation

They follow a particular criteria of investment. The portfolio includes only those companies that fulfill these criteria.

They are concentrated funds. Hence the risk is higher than diversified funds

Diversified Equity Fund Capital Appreciation

A small portion of investment is made in the money market. However this type of fund mainly invests in equities. It does not concentrate on a particular sector.

This type of fund is well diversified so risk associated with sector-specific or company-specific investment is reduced.

Equity Index Fund Capital Appreciation

The portfolio of this fund comprises of the same companies that forms the index. It is constituted in the same proportion as the index.

The risk associated is similar to the benchmark index. However a broader indice is less risky than a narrow indice.

Value Funds Capital Appreciation

This fund is invested in those companies that have sound fundamentals. The share prices of these companies is currently undervalued.

It is a low risk fund if compared to growth fund or specialty fund.

Equity Income/ Dividend

The investment objective is to generate high

This fund is usually invested in companies which generate high dividend.

The risk associated with this fund is the lowest as compared to

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Yield Fundrecurring income and steady capital appreciation.

others.

Aggressive Growth Fund

A mutual fund which aims for the highest capital gains and is not risk-averse in its selection of investments.

Aggressive growth funds are most suitable for investors willing to accept a high risk-return trade-off, since many of the companies which demonstrate high growth potential can also show a lot of share price volatility.

Aggressive growth funds tend to have a very large positive correlation with the stock market, and so they often produce very good results during economic upswings and very bad results during economic downturns.

An aggressive growth fund might, for example, buy initial public offerings (IPOs) of stock from small companies and then resell that stock very quickly in order to generate big profits.

Some aggressive growth funds may even invest in derivatives, such as options, in order to increase their gains.

Growth Fund

A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. The portfolio mainly consists of companies with above-average growth that reinvest their earnings into expansion, acquisitions and/or research and development.

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Most growth funds offer higher potential capital appreciation but usually at above-average risk.

Specialty Fund

Funds that invests predominantly or exclusively in a single industry, sector,  or region of the world. 

For example, a specialty fund may invest only in energy companies, or, even more narrowly, only in naturalgas companies. Specialty funds perform well when their industries perform well, but they are risky because there isno attempt at diversification.

Diversified Equity Fund

A diversified equity fund invests in companies regardless of size and sector. It diversifies investments across the stock market in a bid to maximize gains for investors. They are offered by unit-linked insurance plans / ULIPs, mutual funds and other investment firms.Companies listed on the stock exchange come in all sizes and categories.There are

1. large companies also called large caps, due to their huge market capitalization or market caps

2. mid-sized companies or mid caps with medium capitalizations3. smaller companies or small caps with smaller market capitalizations

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Diversified Equity - Returns (in %) - as on Aug 12, 2016

Compare With Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

Principal Emerging Bluechip(G)Rank 1

492.73 4.6 13.6 30.8 9.5 23.5 37.7 24.5

SBI Magnum Multicap Fund (G) Rank 1

711.90 3.1 11.0 23.8 10.7 20.5 29.6 18.8

ICICI Pru Value Discovery Fund

(G) 

Rank 110,761.91 0.3 10.3 20.6 5.2 15.5 34.8 22.3

L&T India Value Fund (G) Rank 1

1,114.22 1.6 11.7 21.5 8.1 21.1 34.7 22.2

UTI MNC Fund (G) Rank 1

1,768.78 2.3 9.0 16.2 -0.5 21.6 30.5 21.1

Franklin High Growth Cos (G) Rank 2

3,942.53 1.1 10.8 23.5 3.7 18.3 31.3 21.9

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Quantum Long-Term Equity (G)   Rank 2

499.95 2.5 12.6 24.5 16.1 12.6 23.1 16.8

L&T Equity Fund (G) Rank 2

2,402.93 1.4 11.2 21.3 3.5 12.6 22.4 14.5

DSP BR Focus 25 Fund (G) Rank 2

1,177.03 4.5 11.7 24.9 3.9 16.9 25.1 13.7

Franklin India Prima Plus (G) Rank 2

6,557.26 0.9 8.7 20.5 5.9 17.8 27.1 18.3

Birla SL Advantage Fund (G) Rank 2

1,049.74 5.8 15.4 28.2 11.5 22.1 32.5 18.8

Birla SL India GenNext (G) Rank 2

342.46 5.0 12.9 26.5 10.5 23.2 26.5 20.0

Tata Equity P/E Fund (G) Rank 2

563.74 6.4 18.6 31.5 14.7 19.6 33.0 18.2

HDFC Small and Mid Cap Fund (G)Rank 3

751.14 2.3 10.5 24.4 10.4 17.9 25.6 17.0

ICICI Pru Dynamic Plan (G) Rank 3

4,709.66 3.0 11.1 22.7 10.2 9.3 21.7 15.5

Tata Ethical Fund (G) Rank 3

413.64 2.2 6.7 13.4 -1.0 13.7 21.5 16.4

Mirae (I) Opportunities-RP (G)Rank 3

1,614.39 3.3 12.6 26.0 8.1 15.0 26.8 18.5

Tata Dividend Yield Fund - Regular

(G) 

Rank 3282.86 2.1 10.8 21.2 6.7 16.1 23.6 14.9

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Reliance Growth Fund - RP (G) Rank 3

4,919.51 4.2 12.0 25.8 3.6 16.7 27.9 16.2

Franklin (I) Flexi Cap (G) Rank 3

2,433.76 1.5 8.4 18.8 3.6 15.4 26.5 17.3

DSP-BR Opportunities - RP (G) Rank 3

768.20 5.0 15.5 29.9 11.8 18.8 26.2 16.4

Motilal MOSt Focused 25 - RP

(G) 

Rank 3295.80 3.2 10.3 18.0 -1.9 13.4 21.8 --

Principal Growth Fund (G)Rank 3

352.39 2.6 12.6 26.6 7.7 11.9 26.0 18.2

BNP Paribas Dividend Yield (G)Rank 3

194.02 2.5 8.5 19.3 2.9 13.8 23.7 16.0

Birla Sun Life Equity Fund (G) Rank 3

2,095.86 5.8 14.2 28.1 10.6 16.3 30.9 18.7

HSBC India Opportunities (G)Rank 3

468.07 3.8 13.0 27.9 10.8 14.0 27.6 16.8

Kotak Opportunities Fund - Regular

(G) 

Rank 3703.91 3.9 12.9 25.1 6.3 17.5 24.0 16.6

HDFC Core & Satellite Fund (G) Rank 3

414.44 0.9 9.9 22.6 3.7 8.8 26.1 11.1

Tata Equity Opp. Fund - Regular

(G)  

Rank 31,022.21 2.6 10.4 21.8 6.3 15.3 23.5 16.9

HDFC Growth Fund (G) Rank 3

932.91 1.9 12.4 25.9 7.2 9.7 20.9 12.5

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Axis Focused 25 Fund (G)Rank 3

391.71 4.6 10.9 24.6 6.9 15.4 20.6 --

SBI Magnum Multiplier Fund

(G) 

Rank 31,426.06 3.4 9.8 21.0 5.9 17.1 28.1 18.0

HDFC Capital Builder Fund (G) Rank 3

1,129.25 1.4 9.2 21.7 6.5 13.3 25.515.9

Equity Index Fund

An index fund (also index tracker) is a mutual fund or exchange-traded fund (ETF) with specific rules of construction that are adhered to regardless of market conditions. Those rules may include trading or implementation rules, such as tax-management, tracking error minimization, large block trading or patient/flexible trading strategies that allows for greater tracking error, but lower market impact costs. Index funds may also have rules that screen for social and sustainable criteria.An index fund’s rules of construction clearly identify the type of companies suitable for the fund. The most commonly known index fund, the S&P 500 Index Fund, is based on the rules established by S&P Dow Jones Indices for their S&P 500 Index. Equity index funds would include groups of stocks with similar characteristics such as the size, value, profitability and/or the geographic location of the companies.

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Index - Returns (in %) - as on Aug 12, 2016

Compare With  Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

Kotak Nifty ETF Rank 1

318.82 2.0 11.8 20.6 3.7 5.7 14.7 11.4

ICICI Prudential Nifty iWIN

ETF 

Rank 2526.22 2.0 11.8 18.9 2.3 5.5 15.1 --

GS Nifty BeESRank 2

985.18 1.9 11.7 22.0 4.7 6.3 15.3 11.5

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UTI Nifty Index Fund (G) Rank 2

132.20 2.0 11.7 21.9 4.8 6.7 15.8 11.9

IDFC Nifty Fund - Regular Plan

(G) 

Rank 323.37 1.9 11.7 22.1 4.8 6.7 15.9 12.6

HDFC Index - Sensex Plan Rank 3

54.59 1.4 11.3 20.7 3.6 5.4 14.6 11.9

IDBI Nifty Index Fund (G)Rank 3

98.52 1.9 11.3 21.0 3.1 5.2 14.5 11.3

ICICI Pru Index Fund (G) Rank 3

109.11 1.9 11.4 21.7 4.3 6.3 15.8 --

SBI Nifty Index Fund (G) Rank 3

32.37 1.9 11.6 21.8 4.1 5.7 14.7 11.4

Reliance Index Fund - Nifty (G) Rank 3

30.15 1.9 11.5 21.6 4.0 6.0 15.3 12.0

HDFC Index - Nifty Plan Rank 3

94.44 1.9 11.7 21.9 4.7 6.7 15.9 12.0

Value Funds

A value fund is a stock mutual fund that primarily holds stocks that are deemed to be undervalued in price and that are likely to pay dividends. Value funds are one of three main mutual fund types; the other two are growth and blend (a mix of value and growth stocks) funds.

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Equity Income/ Dividend Yield Fund

An equity income fund is a mutual fund composed largely of dividend-paying stocks.

Equity income funds are made up of a variety of different income investments, but they generally invest in securities from established, creditworthy companies that make consistent dividend payments. Generally speaking, equity income funds rarely invest in young, high-growth companies.

Some equity income funds only invest in stocks with certain dividend yields, or they only invest in certain types of issuers, stocks with certain characteristics (preferred stock, for example) and certain types of credit ratings. Although equity income funds produce higher returns than money market and bond funds, they are still considered relatively conservative investments.

ELSS   (Equity Linked Savings Scheme)

ELSS (Equity Linked Savings Scheme) are diversified equity funds with a lock - in period of 3 years. These funds offer tax benefits (Individual /HUF) under Section 80C of Income Tax Act, 1961 according to which, investment up to Rs 1 lakh in ELSS is deductible from taxable income.

ELSS - Returns (in %) - as on Aug 12, 2016

Compare With Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

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* Returns over 1 year are Annualised

Birla SL Tax Relief 96 (G) Rank 1

2,061.57 3.3 8.9 20.2 6.3 19.6 29.1 18.5

Tata India Tax Savings Fund - Reg

(D)

Rank 1202.62 2.9 11.0 6.1 -5.7 5.9 15.4 11.5

Birla Sun Life Tax Plan (G) Rank 2

331.67 3.2 8.6 19.5 5.7 18.7 28.1 18.0

DSP-BRTax Saver Fund (G) Rank 2

1,169.27 5.3 15.1 28.8 11.7 17.8 28.3 19.2

Franklin India Tax Shield (G) Rank 2

1,947.67 1.2 9.0 20.4 5.6 17.2 26.7 18.2

Axis Long Term Equity Fund (G)Rank 2

8,118.15 3.4 10.2 18.1 3.6 17.4 31.0 21.9

Reliance Tax Saver (ELSS) (G) Rank 3

4,659.48 1.9 11.5 22.4 5.3 12.6 33.8 19.5

Principal Tax SavingsRank 3

249.06 2.6 12.7 26.6 7.8 11.9 26.0 18.5

L&T Tax Advantage (G) Rank 3

1,489.04 0.1 9.5 21.9 4.3 14.0 22.1 14.7

ICICI Pru Long Term Equity (Tax

Svng)-G 

Rank 32,894.41 2.8 11.0 20.4 7.6 12.6 27.2 17.9

Sundaram Tax Saver (G)Rank 3

1,164.53 2.8 12.9 27.1 8.6 15.9 23.7 15.5

IDFC Tax Advantage (ELSS)-RP

(G)

Rank 3 394.93 2.1 7.4 20.3 1.6 14.5 24.4 17.7

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UTI Equity Tax Saving (G) Rank 3

605.32 1.6 10.5 20.0 4.3 11.6 20.4 13.5

BNP Paribas Long Term Equity (G)Rank 3

441.69 1.6 6.8 16.9 1.2 13.8 24.317.8

Equity mutual funds are also classified according to their market capitalization.

Market capitalization simply means the company's stake in the market. It is the value of the company on the stock market. Market capitalization can be divided into three categories i.e. Large cap, Mid cap and Small cap equity funds.

Large Cap Funds

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Large cap mutual funds are funds that are invested in large companies like Reliance, ONGC, Infosys, Tata etc. These companies are less likely to go bankrupt. So investing in large cap funds will not make you suffer huge losses. On the other hand companies like Reliance and Infosys are already well established in the stock market, so their chances growing further are less. These companies have reached a saturation point so do not expect a huge profits from them as the scope is limited. Large Cap funds are also known as "Blue Chip funds" and "Mega Cap Funds".

Large Cap - Returns (in %) - as on Aug 12, 2016

Compare With  Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

Birla Sun Life Top 100 (G) Rank 1

1,707.34 3.2 12.4 22.9 7.0 13.4 24.7 17.3

Birla SL Frontline Equity (G)  Rank 1 9,364.34 3.7 12.8 24.4 8.4 14.1 23.8 17.4

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SBI Blue Chip Fund (G) Rank 1

4,796.70 2.9 10.0 21.2 9.4 17.7 26.0 19.2

Kotak Select Focus Fund - Regular

(G) 

Rank 13,825.63 3.3 12.8 24.5 7.9 19.0 27.0 18.8

SBI Magnum Equity Fund (G) Rank 2

1,230.26 3.4 11.8 23.4 8.6 14.0 21.9 15.2

IDBI India Top 100 Equity Fund (G)

Rank 2342.49 3.8 12.2 21.6 2.9 13.7 21.6 --

BNP Paribas Equity Fund (G)Rank 2

1,336.02 1.3 7.0 18.0 1.9 12.2 21.3 16.7

ICICI Pru Top 100 Fund (G) Rank 2

1,276.65 2.9 13.5 22.7 11.5 9.4 20.8 16.3

Franklin India Bluechip (G) Rank 2

5,319.35 1.2 10.3 22.1 6.0 13.4 20.7 14.1

ICICI Pru Focused Bluechip Eqty

(G)

Rank 38,820.49 2.0 12.0 23.3 6.2 11.3 20.7 15.6

Tata Large Cap Fund - Regular Plan

(G) 

Rank 3666.18 3.1 11.4 20.7 3.6 11.1 18.3 14.1

Principal Large Cap Fund (G)Rank 3

266.35 3.3 12.7 24.2 5.3 10.7 21.2 14.2

Kotak 50 - Regular Plan (G) Rank 3

919.90 2.2 10.4 21.7 4.9 13.8 21.7 14.4

L&T India Large Cap Fund (G)  Rank 3 350.72 2.6 10.8 20.3 1.1 11.0 19.8 13.5

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Reliance Top 200 Fund-RP (G) Rank 3

1,886.79 2.3 12.1 20.0 0.9 12.1 24.2 16.1

Franklin India Oppor. (G) Rank 3

471.71 1.9 11.3 24.1 5.2 16.7 26.9 16.2

JPMorgan India Equity Fund (G)Rank 3

417.44 2.6 10.0 20.2 3.9 12.8 21.2 14.1

ICICI Pru Select Large Cap Fund -

RP (G) 

Rank 3534.21 1.1 12.7 24.3 8.5 9.2 20.4 14.6

UTI Mastershare (G) Rank 3

2,986.81 1.7 9.5 19.9 2.1 11.0 19.9 13.3

Baroda Pioneer Growth (G)Rank 3

245.26 2.7 11.9 21.8 2.2 11.4 20.7 12.2

UTI Top 100 Fund (G)  Rank 3 841.72 1.6 9.3 21.1 1.8 11.4 19.5 14.0

UTI Equity Fund (G) Rank 3

4,208.49 3.5 11.1 22.1 5.7 13.3 22.8 16.4

Mid Cap Funds

Mid cap funds are funds that fall in the bracket which is between the large cap funds and small cap funds. These funds are invested in a medium scale company. The risk associated with these funds is comparatively lesser than large cap funds but higher than small cap funds.

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Small Cap Funds

Small cap funds are invested in small companies. Small companies are more likely to go bankrupt. So the risk associated with this category of equity mutual fund is very high as compared to large cap and mid cap funds. Small cap funds are exactly opposite to large cap funds. Even though the risk is high, there are equal chances of the company to make huge profits. This is because small companies have a scope of growing into a big coming in the near future. So small cap funds can be rewarding too.

Small & Mid Cap - Returns (in %) - as on Aug 12, 2016

Compare With Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

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* Returns over 1 year are Annualised

Franklin (I) Smaller Cos (G) Rank 1

2,456.15 2.6 11.3 27.1 16.6 24.9 42.7 27.6

DSP-BR Micro Cap Fund - RP

(G) 

Rank 12,422.99 3.0 12.5 29.6 17.8 33.0 51.1 26.7

Mirae Emerging Bluechip Fund (G)Rank 1

1,411.12 4.2 13.3 27.6 13.8 26.5 42.5 26.8

Reliance Small Cap Fund (G) Rank 2

1,830.94 0.9 7.2 19.8 9.4 21.7 46.2 25.0

SBI Magnum Midcap Fund (G) Rank 2

1,680.82 2.4 8.3 23.5 11.7 26.5 40.9 25.2

Can Robeco Emerg-Equities (G) Rank 2

903.66 3.6 10.8 24.5 7.7 24.3 43.2 24.8

Kotak Emerging Equity - Regular

(G)

Rank 2837.13 3.5 12.5 29.8 13.5 26.5 42.0 23.2

L&T Midcap Fund (G) Rank 2

402.71 2.1 10.6 22.3 7.3 21.7 37.9 21.6

Franklin India Prima Fund (G) Rank 2

3,604.21 3.2 12.1 26.0 13.9 23.8 36.8 24.3

Sundaram Select Midcap -RP (G)Rank 3

3,343.68 5.1 12.0 26.7 9.7 25.1 38.4 21.2

Sundaram SMILE Fund (G)Rank 3

1,068.63 1.5 9.7 24.0 4.7 24.1 43.1 21.4

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HDFC MidCap Opportunities

(G) 

Rank 39,771.58 5.5 14.2 28.3 11.3 22.3 37.8 22.4

HSBC Midcap Equity Fund (G)Rank 3

319.38 3.5 11.3 28.6 9.4 21.8 45.1 20.0

Birla SL Pure Value Fund (G) Rank 3

378.00 7.0 14.1 27.5 12.4 18.8 41.9 22.5

JPMorgan (I) Mid and Small Cap (G)

Rank 3570.40 2.9 10.6 21.2 3.3 21.9 36.6 22.4

Reliance Mid & Small Cap Fund

(G) 

Rank 32,036.94 2.5 12.3 27.0 8.3 19.2 37.3 20.5

DSP-BR Small & Mid Cap -RP

(G) 

Rank 31,809.77 4.1 14.6 29.8 12.6 24.5 39.6 20.0

BNP Paribas Mid Cap Fund (G)Rank 3

500.27 3.7 10.6 22.9 7.3 21.0 34.5 23.5

Birla Sun Life MNC Fund (G) Rank 3

2,910.13 1.8 6.2 16.3 0.7 26.1 34.7 23.7

UTI Mid Cap (G) Rank 3

3,086.82 3.1 10.3 23.7 6.2 21.6 41.823.5

Sector Funds

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These funds are invested in a particular sector. Sector funds are highly risky. Only sophisticated investors actively participate in investing into such funds. Sector funds are sensitive to various factors such as interest rate and currency rate. It is beneficial not to invest in a sector fund if you are not a regular investor. A utility sector fund invests only in utility sector. Other examples of sector funds are pharma, auto, petroleum, health and care, technology and FMCG.

Sector - Banking & Finance - Returns (in %) - as on Aug 12, 2016Compare With Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

Birla SL Bank&Financial Ser -DP (G)

Not Ranked24.00 7.5 21.4 42.8 24.6 28.5 -- --

Reliance Banking Fund - IP (G) Not Ranked

33.09 -- -- -- -- -- -- --

Birla SL Bank&Financial Ser -RP (G)

Not Ranked534.03 7.4 21.1 42.4 23.9 27.6 -- --

SBI Banking & Financial Services -DP (G)

Not Ranked20.50 6.0 18.3 39.7 21.7 -- -- --

SBI Banking & Financial Services -RP (G) 

Not Ranked257.94 5.9 18.1 39.3 21.0 -- -- --

Sector - Pharma & Healthcare - Returns (in %) - as on Aug 12, 2016Compare With Indices

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Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

SBI Pharma Fund - Direct (G)Not Ranked

172.93 0.8 3.0 6.9 -1.8 22.2 29.7 --

SBI Pharma Fund (G) Not Ranked

822.27 0.7 2.6 6.2 -3.0 20.7 28.3 25.9

Reliance Pharma Fund - Direct (G)Not Ranked

131.03 0.4 4.4 4.6 -5.8 18.1 25.2 --

Reliance Pharma Fund (G) Not Ranked

1,292.64 0.3 4.1 4.1 -6.7 17.2 24.2 20.7

UTI Pharma & Health - Direct (G)Not Ranked

20.28 -0.2 5.4 5.4 -6.9 14.6 21.9--

Sector - FMCG - Returns (in %) - as on Aug 12, 2016Compare With Indices

Mutual Fund Scheme Crisil Rank AUM(Rs. cr.)Jun 16

1mth 3mth 6mth 1yr 2yr 3yr 5yr  

* Returns over 1 year are Annualised

SBI FMCG Fund - Direct (G)Not Ranked

35.02 3.1 14.3 22.6 14.9 17.8 17.8 --

SBI FMCG Fund (G) Not Ranked

202.68 3.0 14.0 22.0 13.8 16.7 16.8 --

ICICI Pru FMCG Fund - Direct (G)Not Ranked

21.72 2.7 12.2 22.0 11.6 17.5 16.8 --

ICICI Pru FMCG Fund (G)  Not Ranked 234.31 2.7 11.9 21.5 10.7 16.7 16.0 18.2

Examples

Some equity mutual fund in India

Birla Sun life Top (G)

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Fidelity Equity Fund (G)

UTI Opportunities Fund (G) HDFC Mid cap Opportunities Fund (G)

UTI Equity Fund (G) IDFC Premier Equity A (G)

In India, the concept of mutual fund stands similar to equity mutual fund. In a country like India a common man usually ends up saving his earnings through a bank fixed deposit. F.D is a common form of investment for the people. It is a safe investment but money grows very slowly. If you are looking for a long-term investment which is more than 5 years and you also want faster money growth then equity mutual fund is a good option. 

Positive points of investing in Equity funds

1. Equity Funds Offer Widespread Diversification for a Very Small Initial

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Investment

Most equity funds keep less than 1% to 5% of assets in any individual stock.

 For the average small investor to achieve the same portfolio diversification, he or she would need hundreds of thousands of dollars.  Unless you inherited a large amount of money, that probably isn't possible in your late teens or early twenties, especially if you had to pay your own way through trade school, college, or professional training of some sort.   

2. Equity Funds Offer Professional Management of Your Money For a Low Fixed Fee

The business model behind equity funds is that the portfolio management company charges a set fee, ranging from as low as 0.10% to as high as 2.00% or more.  This fee is applied annually based upon the Net Asset Value (NAV) of the equity fund's portfolio.  In exchange, the investors put their money into the fund and the portfolio manager spends his or her time making the buy, sell, and hold decisions.  For someone who doesn't want to think about reading annual reports of10K filings, that can be an appealing arrangement.

3. Equity Funds Can Be Used to Invest In Specific Sectors, Industry, or Even Countries

Whether you want to invest in pharmaceutical stocks or in Asian companies, equity funds come in countless shapes, sizes, flavors, and varieties to help you create the portfolio you desire.  If you just want to own a broad swath of stocks that represent the biggest enterprises in a country, you can do that, too.  In fact, there is a good chance that if you can think of it, there is probably an equity fund that invests in it.  

5. Equity Funds Can Often Be Purchased Without Paying Brokerage Commissions

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Every penny you have to spend on bank fees, brokerage commissions, and asset charges is a penny that can't be working for you, generating dividends, interest, and rents.  The more you save, and the less you pay, the richer you can become. It's basic math.  One of the big benefits of equity funds is that, more often than not, if you open an account directly with the mutual fund itself, you can avoid brokerage fees altogether.  This is especially true if you enroll in an automatic savings plan that allows the fund to regularly take money out of a savings or checking account at your bank each week, month, or quarter.Over time, this benefit can be enormous.  Consider an investor who wants to regularly invest $250 every week for 40 years.  He would have had to pay a $10 commission to his stock broker if he bought his equity fund shares through the middle man.  By going directly to the fund company, his annual cost savings could be as high as $520.  If the underlying fund generated a 9%compounded annual rate of return, that would result in an extra $175,700 in future wealth by retirement!  The exact same equity mutual fund, the exact same underlying stocks, the exact same portfolio managers; vastly different result.

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Objective

To know the performance of equity mutual funds. To know why to choose equity mutual funds. To know the risk relating to equity mutual funds To know the best equity mutual fund available in the market

Research Methodology

Research Design of my Project is analytical

The data I have collected is from Secondary sources like journals, books and different websites.

I have collected the Primary data by doing a survey, to know the Investment habits of people and analyzed the data on the basis of their financial goals and time duration for the achievement of those goals.

 

Findings Equity mutual funds are the funds having both high risk and high return Growth equity funds are at the top. Sectoral equity mutual funds have volatilities like as the equity sector.

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Suggestions

The investor should have better knowledge about the portfolio of the funds before investing in the equity mutual funds.

Investor who want high return, they should invest in sectoral equity funds. Investor who want reasonable return, they should choose diversified equity

funds.

ConclusionAs share market has high risk high return, and people are looking for better returns but with safety, they choose mutual funds and mainly the equity funds those are giving better returns in the market.

As people have better knowledge about the share markets, they are choosing equity funds for their investment.

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Questionnaire for the Survey to collect the Primary Data

1. Do you know that you need investments to beat inflation Yes No No idea

2. Where do you invest your savings? Saving A/c FD PPF Property MF Insurance Others________________________

3. While Investing your money which factor you prefer most? ( can tick more than one)

Capital protection Past performance Rating Time horizon Risk involved Liquidity Others-_______________

4. What is your biggest financial goal in life?

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Giving best education to children Buying a house Planning for my retirement Accumulating enough wealth to enjoy life like going to vacation, travelling,

enjoy life. Saving enough money to spend on my kids marriage Becoming debt free in life Others

5. How much time frame to achieve your goal 0-3 years 3-5years 5-10 years >10years

6. How much fund do you need to achieve your goal(s)? 0- 10 lakhs 10lakh-25lakhs 25lakh-50lakhs >50lakhs Your expectation-_______

7. To achieve your goals how much money can you invest per month? Rs 0- Rs5000 Rs 5000-Rs 10000 Rs 10000-Rs 20000 Rs 20000-Rs 30000 >Rs30000

8. Do you know about Mutual Funds? Yes No

9. Do you Aware of Systematic investment plan?

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Yes No

10.How much return do u expect from your Systematic investment plan? 7%-8% 9%-10% 11%-13% >13%

11.Do you want us to help you in achieving your goals? Yes No

12. Whether u want to go for Insurance (4%-6% ROI) MF(8%-12% ROI)

Personal Details:-

NAME:- _____________________________

AGE:- _____________________________

MARITAL STATUS:- _____________________________

CONTACT NUMBER:- _____________________________

EMAIL ID:- _____________________________

OCCUPATION:- _____________________________

SIGNATURE:-

Data Analysis

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Name

Financial goals

Investment capicity per

month

Time frame

Giving best education to children

Buying a

house

planning for

retirement

Accumulate wealth for vacations

Becoming debt free

in life

Saving money for kids

marriage

others

Amar Sharma √ √ √

Ajay kalra √ √ √ √ 5000-10000 5-10 years

Neha Arora √ √ √   20000-30000 3-5 years

Mishell Robertson √ 5000-10000 5-10 years

Manoj Rajput √ 0-5000 3-5 years

Vinod Arya √ √

Sushant kishore √ √ 0-5000 >10 years

Ashish goel √ √ √ √   20000-30000 5-10 years

Pradeep chadha √ √ √ √   5000-10000 5-10 years

Inder Kaul

Pawan dhillion √ √ √ √ 10000-20000 5-10 years

Ashish sharma √ √ 10000-20000 0-3 years

Samar Das √ √ √ 10000-20000 >10 years

Chandan √ 5000-10000 >10 years

Aditya √ √ 10000-20000 3-5 years

Rajat Kapil √ 20000-30000 5-10years

Rajan Sharma √ 10000-20000 5-10 years

M.S Bhatti √ 10000-20000 5-10years

Dharmender kumar √ 20000-30000 5-10 years

Gaurav gandhi √ 20000-30000 5-10years

Pradeep Singh √ √ √ 5000-10000 5-10years

Harman singh √ √ √ 10000-20000 3-5 years

Shubhankar √ √ √ √ 10000-20000 5-10 years

Varun Chadha √ 0-5000 3-5 years

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Prateek Mishra √ √ >30000 3-5 years

Anil kumar mishra √ 5000-10000 0-3 years

Ashok Pandey √ √ 0-5000 5-10 years

Ashok kumar √ √ 0-5000 3-5 years

yogesh prabhakar √ 0-5000 3-5 years

vinod Arora √ 5000-10000 0-3 years

Sharda Arora √ 0-5000 5-10years

Sandeep √ √ √ 0-5000 3-5 years

Shobhna Saxena √ √ 0-5000 3-5 years

R s rawal √ 0-5000 5-10 years

Ankit kumar rawat √ 0-5000 5-10 years

Satish ydav √ 0-5000 5-10 years

Priyanka Aggarwal √ √ 5000-10000 3-5 years

Rahul Sharma √ 0-5000 3-5 years

Sunil kumar √ √ √ 0-5000 5-10 years

Manish batra √

Rajesh tyagi √

Diwakar sharma √ 0-5000 5-10 years

Harish singh   √ √ √ 0-5000 5-10 years

abhijt √ 0-5000 3-5 years

jose KS √ 0-5000 3-5 years

Trilok singh √ √ √ √ 10000-20000 5-10 years

Nazim khan √ √ √ √ √ √ √ 5000-10000 5-10 years

Pankaj yadav √ √ 0-5000 5-10 years

Sanjay yadav √ √ 0-5000 0-3 years

Shweta singh √ √ √ √ √ √ √ 5000-10000 3-5 years

References/Bibliography Websites like:

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www.mutualfundsindia.comwww.mfea.comwww.moneycontrol.comwww.investopedia.comwww.dhancreators.com

Wikipedia

Survey Conducted to know the investment habits of people.